Coverage Realty is a flat-fee real estate firm, as well as Michigan’s most innovative real estate agency with our hybrid commission structure. Our slogan says it all: “It’s your money…keep it!”
At Coverage Realty, the concept of transaction fees bothers us. The fees can be disguised under many different names and is something that most full-service agencies charge. These fees are nothing more than a money grab and can range from $200 to $500—or more! Coverage Realty does not
charge transaction fees.
Scenario #1: If you are the seller, this fee is charged in addition to the commission that the seller pays at closing when your home is sold. Let’s say your home sells for $200,000. You agree to pay 6% in commission, which would be $12,000 (much more than what you’ll pay with Coverage Realty). In
addition to the $12,000, the agent also has the nerve to expect you to pay another $200 to $500 in the form of a transaction (money grab) fee! Sadly, most agents don’t have the courage to tell their clients about the extra fee until the end of the transaction.
Scenario #2: You are the buyer, and you’re required to pay the money grab fee of $200 to $500. Using the same amount of $200,000 from above, and assuming the commission is split evenly (which it usually is), the real estate firm representing you would make $6,000. That is enough profit on the sale for the brokerage. Again, the agent most likely has no courage to tell you about the fee.
As you can see, this fee is nothing more than a money grab fee by the other brokerages. They are making a small fortune off this bogus fee! Let’s say a brokerage is doing 1000 deals a year and their fee is $300 per transaction. The brokerage is making an additional $300,000 per year—not a
bad deal for the broker for doing nothing! In my opinion, if the broker needs to charge an additional fee, regardless of if you are the buyer or seller, then the agent should pay it — not the customer.
Coverage Realty will never charge you any money grab fees. We are dedicated to representing you throughout the buying and selling process. Not only will you save a ton of money on commission, you won’t need to worry about any money grab fees! Call us at (586) 231-1349 or email us at [email protected]. Remember, “It’s your money…keep it!”